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How is Fintech Disrupting the Finance Industry?

For those who haven’t heard of fintech, it simply refers to the technology that is being used to improve functions and services within the finance industry. This has ranged from the software used by banks to improve the handling of customer accounts to super-fast money transfers and online shopping.

Indeed, whether you call it fintech disruption or improvement, here are of the ways that technology is transforming the finance industry:

 

Customer Service AI Bots

 

Chatbots are one of the most valued programmes in modern technology, particularly for financial companies. Mainly used on websites, these bots can help to handle customer queries that can be found on their website. This means that a customer won’t need to call and use the time of a human assistant to help, which means that employee can focus on trickier customer queries.

Not only does this save money for a company, but your customers have a better overall level of satisfaction as their query is answered quickly and efficiently.

 

AI for Fraud Detection

 

Although we can now access our bank and credit card accounts anywhere thanks to smartphones, that doesn’t mean that we actively check these accounts for fraudulent activity. Which means, without fintech, we won’t see fraud until our money is gone.

Many banks and financial companies are now using AI technology to flag potential fraud as it happens. Meaning both you and your bank are alerted quickly so that you can act fast to lock and re-secure your accounts.

This is not just used for fraud with customers, though, as banks themselves use this AI technology to flag and block attacks from hackers looking to mine sensitive information, which can cost those in the finance industry millions if successful.

 

Stronger Security Through Biometrics

 

As technology advances, passwords are becoming less and less safe for protecting our sensitive data. Particularly when a large majority of us use the same password for multiple websites and accounts. Which is why fintech is working on more secure ways to protect our accounts, by implementing biometrics for security. This includes thumbprints, facial recognition, vocal patterns and irises.

Many banks are rolling out biometrics to help their customers protect their accounts, particularly on smartphones that can be stolen.

 

The Dropping Need for Brick-and-Mortar Banks

 

With more people doing their banking online, through apps and websites, there has been a drop in the demand for banks to open and maintain brick-and-mortar banks. Indeed, many banks are now looking to save money by closing banks in several towns and villages.

This isn’t always met with enthusiasm though, as many rural communities with businesses are unable to conduct all their banking online. This means they will need to travel to get to a physical bank.

While some might call it fintech disruption, there is no denying that advancements in technology are helping customers and companies alike to improve security and streamline processes. Which is particularly important with online shopping and smartphones now being a normal part of society.

How Are Digital Trends Disrupting the Finance Industry?

Although every industry has felt disruption through advances in technology, it is the finance industry that appears to have felt these digital trends the most. With the entire sector needing to develop and move forward with the times.

Here are just some of the ways that the financial sector has changed and developed in recent times:

 

Customer Personalisation 

 

When it comes to banking and financial companies, there is lots of competition. So, to obtain new customers and keep their current customer base happy, these companies are having to place a higher emphasis on personalised services and marketing.

So, to improve the customer experience, these companies are using technology to create apps and the like so that customers are always happy.

This has also seen a rise in the use of AI bots to improve customer experience. Here, many financial companies will add an AI bot to their website, where it can answer common queries for customers. As these are available 24/7, customers can get answers to questions at any time rather than waiting for a phone line to open.

 

Open Banking is Now the Norm

 

While banks have been reluctant to accept open banking, where customers can share their financial information with third parties, the customer demand for open banking is forcing these banks to make it a reality to keep customers happy.

This is particularly popular for allowing customers to use apps that can help them to track and manage their monthly spending habits in order to improve savings and help pay debts. 

 

Established Banks are Creating Their Own Challenger Brands

 

A challenger bank is a small retail bank that aims to compete with the larger banks on the market, such as Monzo. With these banks growing in popularity, many banks are losing their customers to these mobile-only banks.

To help combat this disruption, many major banks like HSBC and RBS are creating their own version of challenger banks, so that they can improve their customer base.

 

Fintech Companies Aren’t a Bad Thing

 

Although new fintech companies are indeed rivalling well-established financial companies. This isn’t necessarily a bad thing. Not only is this encouraging companies to move with the times and improve services for customers, but to do this, many companies are teaming up with new fintech companies to share expertise. Which means the customers get the best of both worlds.

 

Cryptocurrencies are No Longer the Future

 

It seemed like cryptocurrencies like Bitcoin came out of nowhere, totally taking the world by storm. In fact, many of us thought that cryptocurrencies would be the future for us all. That was, until 2018 when the value of these currencies plummeted, bringing into question whether or not these cryptocurrencies had any long-term viability in the financial sector.

That being said, the blockchain technology that was used in cryptocurrencies is still incredibly interesting and useful. So, over the next few years, we may see this technology used in other more exciting ways in the financial sector.

 

Technology is improved every day, which means the financial sector is going to need to constantly evolve to stay relevant. Which means we can expect many notable changes in the years to come.

Digital Marketing Trends in 2020

As we are now past the halfway mark of 2019, while businesses are still busy with this year’s efforts, they will also be looking to next year and what 2020 holds for the world of digital marketing.

There are no indications that digital marketing is going to be any less important. However, some digital marketing trends may take prominence in those 12 months. In the following post, we will look at five.

 

The Rise of New Technologies

 

During 2020 there are some sure-fire signs that businesses across sectors will start to use new technologies as part of their digital marketing strategies and to enhance the experience of their customers.

Augmented reality and artificial intelligence are two that look set to improve things overall. You can bet we will see these constantly evolving and improving technologies used on an even wider scale than they have been in the past.

 

Greater Emphasis on Personalisation in Email Marketing

 

Modern customers are looking for greater personalization from companies and brands, which is why marketing teams appreciate it’s often the small and subtle things that make the difference. Email marketing will continue to become more personalised and cater directly to specific segments of a company’s market.

Along with making emails more personal though, there is also going to greater attention paid to developing emails that will work well on mobile handsets and devices, such as smartphones and tablets, as that’s where a large percentage of people access their personal email from.

 

More Attention Will be Given to Geo-Marketing

 

Over the last few years, businesses in general have been utilising geo-marketing as part of their marketing strategies. However, with the demand for more accurate results, there’s been the development of geo-fencing and other brand-new technologies that bridge the gap ever so slightly between brands and their customers. Geo-fencing has been particularly effective as it enables businesses to build awareness for their brand and message while attracting competitor’s clients.

 

Video Will be Used to Enhance SEO

 

Businesses use SEO so understand the behaviour of their consumers. As search engines are always making changes and updates to ensure the most engaging and user-friendly sites are displayed and presented to users, companies need to constantly switch their approach and focus to stay in the rankings when the algorithms change.

That’s where video is important because video content is shared around 1,2000% more than the complete sum of text and links. That’s why there will be more businesses who will use videos to improve their SEO.

 

More Conversational Engagement on Social Media

 

As social media has continued to take a foothold in the world, businesses have needed to adapt and become more approachable and personable with their target audience and customers. This will undoubtedly continue in 2020, with an even greater focus on brands using social listening over conversations concerning their rivals and their brand. This will be valuable for helping them understand the content that performs best.

 

Get Your Global Business Ready For E-Commerce

If you’re looking to expand your global business, look no further than e-commerce. You see, e-commerce is the future. The numbers are in and they’re pretty clear. According to last year’s statistics from Statista, the global e-commerce market will likely grow by 246.15% as far as sales are concerned.

That means the global e-commerce industry, which was worth $1.3 trillion in 2014, will grow to be worth $4.5 trillion in 2021. That’s a massive amount of growth. So, it’s clear that your business’s future lies in e-commerce.

But, how do you go about doing it? Well, we’ve got a few strategies to help you out. Do note that this isn’t an exhaustive list of strategies. There’s a lot that goes into establishing an e-commerce business, but we’re just focusing on a few key steps.

 

Start Developing Your Social Networks

 

Social media is the holy grail of consistent traffic and leads. So, leverage your social media networks to build an audience. Start by claiming your name on all the major networks. Establish your territory and start building your brand.

Also, choose the social media platforms that work for you the best. It doesn’t always have to be on Facebook or Twitter. If you’re a brand that relies heavily on visuals, Instagram or even Pinterest can prove to be far more effective.

 

Prepare Your E-Mail Marketing Strategy

 

E-Mail is the most important part of e-commerce marketing. Time and again, it has proven to be the most effective marketing channel for e-commerce sites, often providing tremendous returns on investment.

 

Localize

 

Of course, let’s not forget localization. As a global brand, you need to make sure your site is localized for the markets you’re catering to. This firstly means translating the content into the local language while taking context into consideration.

Then come in the other aspects. This includes using high-definition images to highlight products because images are far more effective than words. You also need to provide prices in the local currency in order to improve the shopper’s experience. Make sure you establish customer service channels that cater specifically to local shoppers.

To put it simply, make sure you have done everything possible to create a comfortable experience for your international shoppers. Go local.

 

Use Analytics

 

Analytics will help you set up your e-commerce business effectively. With analytics, you can gain valuable insights about your visitors and customers. This is necessary considering the fact that you won’t be dealing with people in person anymore.

So, to truly be able to see your online customers, you need analytics to guide you.

 

Get Started!

 

So, there you have it – a few basic steps to help you get started with your global e-commerce endeavor. Remember, the idea is to make things as convenient as possible for your audiences across the globe. So, make sure you assess their needs and requirements. Then, use the insights to figure out the next step.